Amex to Pay $350 Million Penalty Over AML Compliance Gaps
American Express will pay a $350 million civil penalty after federal banking regulators found serious shortcomings in its anti-money-laundering program. Authorities said the bank did not properly flag or report roughly $13 billion in suspected trade-based money laundering between mid-2014 and mid-2025. The company stated the enforcement actions would not alter its 2026 guidance or its expected 2027 outlook.
The OCC announced the $350 million penalty on October 8, 2026, while the Federal Reserve issued a separate cease-and-desist order covering American Express and its travel-services arm. Regulators said the bank mishandled roughly $13 billion in suspected trade-based money laundering from June 2014 through May 2025, meaning the activity was not properly spotted, assessed, or reported.
Investigators pointed to staffing shortages, limited expertise, weak training, control gaps, and inadequate independent testing. They also said customer vetting and risk checks were deficient, and that compliance resources focused too heavily on the smaller deposit side rather than the larger card business. Amex said the orders would not change its 2026 guidance or expected 2027 outlook.
The penalty may push banks to devote more resources to AML monitoring and staff training, potentially raising compliance costs that could be passed on through fees or reduced services. Customers, especially those with complex cross-border or trade-related transactions, may face added verification and delays. Shareholders and employees could see reputational and operational pressure, while regulators may use the case to signal tougher oversight of card and banking operations.